|
|
Greg Mulholland-Working Hard For Leeds North WestMulholland calls for greater transparency in small business lending as Government outlines banking reforms
June 14, 2012 4:44 PM
Leeds North West MP Greg Mulholland has this morning welcomed plans to split retail and investment banking announced by Treasury Minister Mark Hoban MP, which will give savers greater protection in the event of bank failures. During the debate on the statement, Mr Mulholland called for increased transparency of figures relating to bank lending to small businesses.
Praising efforts to promote transparency in pay and banking products, Mr Mulholland called for bank lending figures to be more transparent, following complaints from small businesses and small business organisations that lending figures, often including existing loans, and not honest. Mr Hoban, Financial Secretary to the Treasury, welcomed Mr Mulholland's comments and pointed to the success of schemes such as the National Loan Guarantee Scheme which has benefited thousands of small and medium-sized enterprises (SMEs).
The Minister announced the publication of the White Paper, which will be open for consultation until 6th September, outlining plans to fundamentally reform the structure of UK banking. It offers further detail on plans to separate retail and investment banking through a 'ring-fence', and to increase competition in the banking sector. It also sets out proposals to make banks more resilient and to make them simpler to resolve in the event of failure. Draft legislation will follow in the autumn with all legislation to be in place by the end of this Parliament in 2015.
The White Paper details how the Government will implement the recommendations of the Independent Commission on Banking (ICB), established by the Chancellor and the Business Secretary in June 2010, to consider reforms to the UK banking sector to promote financial stability and competition.
Greg has on a number of occasions in recent years pressed Ministers to clarify the lending environment for small business, their assessment of bank lending practices and to ensure that credit is available to SMEs.
Greg Mulholland MP (LD, Leeds North West) says:
"The White Paper now published sets out plans which will protect savers, stabilise the banking sector and separate retail and investment banks. These are important steps to reform a sector still tarnished by bad decision making and bad structures- this is good news for everyone.
"Now we have to make sure that small and medium sized businesses, which are a major part of our continued economic recovery, not only have lending available to them but that the lending figures available to them are honest and transparent to give a real indication of how much banks are really lending
Notes to editors:
The Government White Paper can be viewed at http://www.hm-treasury.gov.uk/d/whitepaper_banking_reform_140512.pdf